In generic, a cloud is the source of rain water but in the world of internet, a cloud is an online source platform for data and software accessibility without the hindrance of time, place and device. Accounting is the scientific process of recording, processing and summarizing the financial information. So, together CLOUD ACCOUNTING is simply ONLINE ACCOUNTING.

There has been a visible impact of technology in the field of finance and accounts. It all started with paper, where the accounts were maintained in writing on books. Gradually, computers and laptop replaced the books saving time, money and labor. It also solved the problem of book decay and the data for any year was available at a click of a button. Now, the technology has further evolved and Cloud Accounting is the flavor of the season. Cloud Accounting has easily solved the Problem of Place.

Let’s detail the advantages of Cloud Accounting:

• Cloud Accounting has made data accessibility quick, easy, anytime and anywhere.
• Cloud Accounting has made data entry system obsolete. A business is run on money and monetary transactions are easily available through bank statements. The live feeds of these transactions can directly be uploaded on the cloud as and when they occur. Thus keeping the accounts updated and up to mark.
• The business owner can directly talk to the accounts manager in real time without any thought of sending some files.
• Cloud is automatically updated with newest laws, rules and regulation and therefore, generating the correct books of accounts as per the policies.
• Cloud Accounting has simply eliminated the need of the Storage, Maintenance and Regular Backups of Accounting data.

Let’s look into the security aspect of the Cloud:

Data and information kept in the book, computer or laptop could be stolen or destroyed by fire or any natural calamity or be damaged by an unknowing human error. Cloud accounting does not store the data on the hardware rather is encrypted online and is password protected. Also, it has multi-location backup system for the data, so if one is not accessible another is ready to work real time.

Cloud accounting is boon not only to large corporate houses but to small business houses as well as it is cost benefiting, time saving and energy consuming. Cloud accounting is a welcome change and everyone should embrace it and reap its benefit. On the lighter note no matter where the accounting data is stored, on paper, laptop or on cloud but in the end it will always be called BOOKS OF ACCOUNTING.